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Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether, on an appeal against conviction under section 138 of the Negotiable Instruments Act, the appellate court can direct payment of compensation, in whole or in part, as a condition for suspending the substantive sentence.
Analysis: Section 357 of the Code of Criminal Procedure distinguishes between compensation paid out of fine under sub-section (1) and compensation awarded independently under sub-section (3). The automatic stay in sub-section (2) applies only to payment of compensation out of fine recoverable under sub-section (1), and does not extend to compensation ordered under sub-section (3). The power to award compensation under sub-section (3) is in addition to the sentence and must be exercised reasonably, keeping in view the nature of the offence, the claim of the victim, and the ability of the accused to pay. In cases under section 138 of the Negotiable Instruments Act, the appellate court therefore has power to impose payment of compensation, or a part of it where the amount is heavy, as a condition for suspension of sentence.
Conclusion: The appellate court was competent to require payment of compensation as a condition for suspension of sentence, and the impugned orders did not call for interference.
Final Conclusion: The writ petitions and criminal revision application were dismissed, and the challenged conditions for suspension of sentence were upheld.
Ratio Decidendi: The statutory stay under section 357(2) of the Code of Criminal Procedure is confined to compensation payable out of fine under section 357(1) and does not bar an appellate court from directing payment of compensation under section 357(3) as a condition for suspending sentence, provided the amount is reasonable and the accused's ability to pay is considered.
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